In spite of a potential approval of Ethereum exchange-traded funds (ETFs) on the horizon, the president of the US Securities and Exchange Commission (SEC), Gary Gensler, remains steadfast in his stance on cryptocurrencies. Gensler recently reiterated that most cryptocurrencies are considered securities, just days before the decision on the ETFs is expected to be announced.
During a public statement, Gensler stated, “There are 15 thousand or 20 thousand tokens in this field. They do not function as currency.” He emphasized that investors often base their decisions on the group of entrepreneurs behind these tokens, which aligns with the definition of a security set by the Supreme Court.
When questioned about the SEC’s ability to regulate the cryptocurrency industry, Gensler stated that while not all cryptographic tokens are securities, he believes that most of them are. This reaffirms his belief that the SEC should play a role in overseeing the sector.
Furthermore, a group of bipartisan US lawmakers, including members of the House Financial Services Committee, have urged the SEC to consider approving spot Ethereum ETFs. They argue that this move would be a natural progression following the approval of spot Bitcoin ETFs earlier this year. They also highlight the need for consistency in the SEC’s application of its standards and the legal reasoning behind the approval of Bitcoin ETFs.
It is important to note that Gensler has recently expressed concerns about the proposed law FIT21, citing potential regulatory gaps and risks for investors and markets. While the Biden administration opposes the bill’s approval, they have not indicated plans to veto it, indicating a divergence in the US government’s stance on cryptocurrency regulation.
Please note that the information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.